Brewbound Podcast

We at BevNET — the parent company of Brewbound — owe an apology to our podcast listeners, readers, and members of the community we serve. The intent of the Brewbound podcast is to engage in discussion and illumination of various aspects of the unfolding craft beer story. What our hosts said about influencers in that episode was inappropriate and offensive to our listeners and community, as well as the people who were mentioned by our hosts by name. The beer industry, and our coverage and support for that industry, has prospered and grown from the contributions of women brewers, women connoisseurs, and women beer drinkers. Our hosts’ attitude failed to convey our respect, as an organization, for these contributions. We apologize sincerely and with heavy hearts. As an organization, we are hurting and embarrassed, and are reflecting on our values and processes to see that we are ensuring that everything we do respects and represents them. We are putting the Brewbound Podcast on hiatus immediately as we evaluate the future of the program as well as make adjustments to our production process to ensure that nothing like this happens again. We will also be editing out the offensive “banter” portion of Brewbound Podcast episode #44 from our podcast site, leaving only the main interview, which we believe reflects the values and intention for which the Brewbound Podcast is intended: as a fair, respectful and inclusive resource for the industry. Our inbox and ears are open to hear the thoughts of our listeners, our readers, beer industry influencers, and other members of the community. We would like to hear from you at [email protected] Sincerely, John Craven, Founder & CEO, BevNET.com, Inc. Jeff Klineman, Editor-in-Chief, BevNET.com, Inc.

If you ask Beer Institute CEO Jim McGreevy to describe his organization, you’ll get a pretty succinct answer. “We only do federal policy, but we do it very well,” he told Brewbound Podcast hosts Chris Furnari and Justin Kendall during a recent interview. The Beer Institute – long seen as a trade association for large beer companies such as Anheuser-Busch, MillerCoors, Heineken USA, and Constellation Brands — has in recent years played a key role in shaping policy that impacts small brewers. “We’re helping them on some of the most critical things that are happening in their business,” he said, noting the BI’s involvement in crafting and eventually helping pass the Craft Beverage Modernization and Tax Reform Act (CBMTRA). When McGreevy joined the BI five years ago, the industry was divided on the issue of how to reform federal excise taxes. Small brewers didn’t think large brewers and importers needed a break, while large brewers worried about violating WTO policies. “That battle had been raging for about eight years,” McGreevy said. Under his leadership, the BI and the Brewers Association (BA), which represents the interests of small U.S. brewers, came together on a compromise bill (CBMTRA) that was eventually signed into law in 2017. CBMTRA was included in the Tax Cuts and Jobs Act, and its passage marked the first time since 1990 that the federal excise tax on alcohol had been adjusted. However, the lower rates are set to sunset at the end of 2019, and now both trade groups are fighting to make the tax cuts permanent. In episode 45 of the Brewbound Podcast, McGreevy discusses his group’s effort to extend tax cuts for all brewers and importers. He also discusses the importance of fighting aluminum and steel tariffs, explains what it’s like to work in Washington, D.C., as a lobbyist in the Trump era, and provides an update on an industry-wide advertising initiative aimed at improving the health of the beer category. Listen to episode 45 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 46 will be released on Thursday, July 25. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 16:40: Chris Furnari and Justin Kendall introduce episode 45, discuss the constant barrage of hard seltzer content hitting the internet, and read the latest headlines. 16:40 – 41:25: Furnari and Kendall interview Beer Institute CEO Jim McGreevy. 41:25 – 1:01:10: Furnari and Kendall share takeaways from the interview, and select their four-pack of summer activities to do with a beer.

As Denizens Brewing prepared to open its second location in Maryland’s Riverdale Park neighborhood earlier this year, co-founder Julie Verratti was “staring down the reality of not knowing what you don’t know.” The company’s new 12,000 sq. ft. production brewery and taproom, which features a 30-barrel brewhouse, enables Denizens to produce about 10 times more beer than it did in 2018. The expanded brewing capacity also comes with additional distribution opportunities throughout Maryland, northern Virginia, and Washington, D.C. Working with wholesaler partners was something Verratti wasn’t as familiar with, however. Prior to the opening of its Riverdale Park location, Denizens had self-distributed all of its beer. But with extra brewing capacity and more beer to sell, the company needed to evolve. So Verratti got to work vetting and selecting distribution partners. Her process? “Interviewing a lot of distributors; asking other distributors what they thought of other distributors; asking retailers what they think; asking breweries what they think, and narrowing it down from there,” she said. In episode 44 of the Brewbound Podcast, Verratti discusses her experience opening a second brewing location, and explains why the company structured its debt around reasonable growth projections. She also dives into the topic of diversity and inclusion within the brewing industry and shares strategies for reaching a more diverse set of consumers. Listen to episode 44 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 45 will be released on Thursday, July 18. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 15:30: Chris Furnari and Justin Kendall introduce episode 44 and recap their Fourth of July vacations. 15:30 – 46:05: Furnari and Kendall interview Denizens Brewing co-founder Julie Verratti 46:05 – 1:14:07: Furnari and Kendall share takeaways from the interview, select their four-pack of all-time summer blockbusters, and do some “dumb journalist math.”

When you’re a state guild leader working on behalf of small craft breweries to get beer distributors on board with any kind of three-tier reform, sometimes it’s best to get out of the way. “When you have the brewers and the [wholesaler] owners in the same room, they already have a working relationship,” explains Georgia Craft Brewers Guild executive director Nancy Palmer. Stepping back from the negotiating table and letting the two sides hammer out an agreement, Palmer said, ultimately led to the 2017 passage of Senate Bill 85, which gave craft breweries the right to sell up to 3,000 barrels annually directly to consumers. “It was just the business owners, and that’s really what produced the outcome that everyone was comfortable with,” she said. That approach could be deployed again in 2020, Palmer added, as she looks to sell wholesalers on the idea of allowing breweries to self-distribute, as well as reform strict franchise laws that govern relationships between manufacturers and distributors. “If they [guild members] come out of the room and say ‘this is what we’re doing,’ then that’s what we’re doing,” she said. “That’s my job.” In episode 43 of the Brewbound Podcast, Palmer discusses what franchise law reform could look like in Georgia, explains what it takes to persuade wholesalers on the idea of reform, and shares her outlook on similar efforts across the U.S. Listen to episode 43 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 44 will be released on Thursday, July 11. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 10:30: Chris Furnari and Justin Kendall introduce episode 43, do some Fourth of July trivia and share the latest news 10:30 – 39:40: Furnari interviews Georgia Craft Brewers Guild executive director Nancy Palmer 39:40 – 1:00:18: Furnari and Kendall share takeaways from the interview, and select their four-pack of Fourth of July activities.

As an increasing number of craft beer companies close their doors, the market for used brewing equipment is heating up. But not all that glitters is gold, especially when it comes to buying assets from a distressed brewery. John Dantzler, the co-founder of New York City’s Torch and Crown Brewing, recently joined the Brewbound Podcast to share his experience buying used brewing equipment at a bankruptcy auction. According to Dantzler, to maximize your value at a bankruptcy auction, brewery owners need to do their homework. “If you are acquiring something out of bankruptcy, it is typically not going to be this pristine, brand new piece of assets,” he said. His advice? Operate under the assumption that precision equipment such as filters, or centrifuges have “probably not been treated the right way.” “Those are probably beyond salvageable,” he said. “But the actual stainless steel or harder assets that you can beat up a little more, that’s where we ascribed the value.” In episode 42 of the Brewbound Podcast, Dantzler discusses the ins and outs of bankruptcy buys and explains why he’s committed to opening a production brewery in Manhattan. He also discusses what’s leading to the uptick in distressed brewery sales, and shares how his business model has evolved over the last five years to accommodate for the current marketplace realities. Listen to episode 42 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 43 will be released on Thursday, July 4. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 23:55: Chris Furnari and Justin Kendall introduce episode 42, discuss hard seltzers, old beer on retail shelves, and the latest news. 23:55 – 1:02:08: Furnari and Kendall interview Torch & Crown Brewing co-founder John Dantzler. 1:02:08 – 1:23:36: Furnari and Kendall share takeaways from the interview, and rundown segments

While many small breweries have elected to chase rotating draft handles with a “flavor of the week” approach to beer making, Pennsylvania’s Brew Gentlemen is taking a more traditional path forward: building a flagship brand. The decision to invest in a flagship-centric business model at a time when many consumers are clamoring for “what’s new,” has its advantages, according to Katase. “Because we’re small, and most of the volume is sold right out of our doors, we have a lot of face-to-face with our customers,” he said. According to Katase, most customers would sample new offerings while on-site, but walk out the door with Brew Gentlemen’s year-round flagship IPA, General Braddock’s. “Our accounts, they’re getting tired too,” he said. “They want some consistency too.” Approximately 50 percent of what Brew Gentlemen currently makes is General Braddock’s IPA, and that enables the company to improve its efficiency both inside and outside of the brewery. “Even just the conversations we’re able to have with accounts is, ‘We know you’re getting a General Braddock’s, so let’s talk about other stuff,’ and work on the relationship,” he said. In episode 41 of the Brewbound Podcast, Brew Gentlemen co-founder Matt Katase discusses his flagship philosophy and explains why he identifies “themes” to help guide the company at the start of every year. Listen to episode 41 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 42 will be released on Thursday, June 27. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 10:55: Chris Furnari and Justin Kendall introduce episode 41, discuss the Beer Institute’s annual meeting and share recent news. 10:55 – 41:00: Furnari and Kendall interview Brew Gentlemen co-founder Matt Katase 41:00 – 1:00:44: Furnari and Kendall share takeaways from the interview, and rundown segments

Prior to launching Athletic Brewing in 2017, co-founder Bill Shufelt spent about 12 years working in the hedge fund world. During that time, he found that drinking alcohol, staying up late and waking up early made it difficult to maintain a healthy lifestyle. So Shufelt went sober. And in the process of abstaining from the craft beers he had grown to love, Shufelt wondered why nobody was making a high-quality, non-alcoholic option for craft drinkers. His idea was to produce a fully fermented beer to under 0.5 percent ABV without the need for dealcoholization equipment. “If any of the traditional technologies worked, to make a good non-alcoholic beer, one of these very well-funded mega breweries or craft breweries would already be making it that way,” he said. Shufelt, along with co-founder John Walker, experimented with hundreds of batches of homebrew before dialing in their process. About a year ago, Athletic brought a range of non-alcoholic craft beer to market, from golden ales to goses. The company’s timing was perfect, as a growing number of consumers are beginning to cut back on boozing. According to Nielsen, 66 percent of legal-drinking-age consumers between the ages of 21 and 34 are making efforts to reduce their overall consumption. At the same time, 25 percent of beer drinkers are more interested in consuming alcoholic beverages that were produced with wellness in mind versus “a couple years ago,” the firm recently told Brewbound. So what does the future hold for non-alcoholic craft beer? “In the next five or 10 years, it’s going to be everywhere,” Shufelt contends. In episode 40 of the Brewbound Podcast, Shufelt discusses his outlook on the emerging non-alcoholic beer sector in the U.S., and the occasions in which his products — and others like it — play. Listen to episode 40 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday. Episode 41, featuring Matt Katase, the co-founder of The Brew Gentlemen, will be released on Thursday, June 20. For questions, comments or suggestions, please email [email protected]. Show Notes: 0:00 – 23:45: Chris Furnari and Justin Kendall introduce episode 40, discuss the Beer Institute’s annual meeting and share recent news 23:45 – 51:14: Furnari and Kendall interview Athletic Brewing co-founder Bill Shufelt 51:14 – 1:01:22: Furnari and Kendall share takeaways from the interview